How to Invest in Currencies
Therefore, at best, we can see where an economy is headed three to five years into the future. Longer than that, all bets are off. Shorter than that is pure gambling. Of course, even predicting an economy's strength for the next few years can be difficult, but it's the "sweet spot" in which you are most likely to make good currency bets. Investing, after all, is about consistently making "good enough" decisions.
When you invest in a currency you are making a statement not just about one economy, but about two. For example, if you live in the U.S. and you are investing in the euro via foreign exchange (Forex or FX), you are making a statement about the relative strength of the European economy vs. the U.S. economy.
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